Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
TOTAL COMPANY PRODUCTION
Samson’s net monthly production, for the last six months, is as follows:
| October | November | December | January | February | March | ||||||||||||||
| OIL, BO | 6,591 | 17,619 | 18,906 | 15,221 | 22,590 | 26,893 | |||||||||||||
| GAS, MCF | 11,861 | 9,363 | 12,102 | 15,384 | 21,694 | 26,555 | |||||||||||||
| BOE | 8,567 | 19,180 | 20,923 | 17,785 | 26,206 | 31,408 | |||||||||||||
| BOEPD | 285 | 618 | 675 | 574 | 845 | 1,013 | |||||||||||||
BO: Barrels of oil
BOE: Barrels of oil equivalent (gas converted at its heating value)
BOPD: Barrels of oil per day
MCF: Thousand cubic feet
BOEPD: Barrels of oil equivalent per day
Samson’s net production for March continued to grow as the results of the 2014 infill drilling in North Stockyard are incorporated. Seven wells remain shut in as the Operator manages the field with minimal operating cost in response to the current oil price. Given that all of the wells have been drilled and fracked, the individual well reports will be discontinued, however we will provide mid-monthly production reports with commentary.
COMMENTARY
North Stockyard has a total well count of 23 wells made up of 14 middle Bakken, 8 Three Forks bench 1 (TF1), and 1 Three Forks bench 2 (TF2) wells. Rainbow has a single middle Bakken well. The status of these wells at the end of April was as follows:
| Middle Bakken | TF 1 | TF 2 | ||||||||
| Well count | 15 | 8 | 1 | |||||||
| Producing | 12 | 5 | 0 | |||||||
| Shut in | 3 | 3 | 1 | |||||||
HEDGE BOOK
In early April, Samson closed out its 2015 hedge book to crystalize that value of $1.2 million and some additional down side protection was put in place in the form of deferred puts which will capture any future upside in the oil market. The hedged portfolio is now as follows:
| Calendar year | Volume bbls. | Floor | Ceiling | ||||||
| 2016 | 2,788 | $85.00 | $89.85 | ||||||
| Calendar year | Volume bbls | Sub Floor | Floor | ||||||
| 2015 | 73,500 | 45.00 | 32.50 | ||||||
| 2016 | 36,600 | 67.50 | 82.50 | ||||||
As at April 10th, 2015 the book value of the hedge was approximately $480,000, valued by Samson’s counterparty.
RESERVES
Samson commissioned Ryder Scott Company to determine its reserve as at March 1st. This was done to capture the Proved Developed Producing reserves value from several additional wells bought on line in North Stockyard after January 1st, the date of our last report. The net present value (NPV10) was calculated at a 10% discount rate using the New York Mercantile Exchange (NYMEX) strip price adjusted for regional differences. As of March 1st, 2015 our reserves and NPV10 are:
| PDP | PNP | PROVED | ||||||||
| Oil MBBLS | 1,133 | 430 | 1,563 | |||||||
| Plant Products MBBLS | 1 | 1 | ||||||||
| Gas MMCF | 1,273 | 391 | 1,664 | |||||||
| BOE MBBLS | 1,346 | 495 | 1,841 | |||||||
| NPV 10 M$ | $27,360 | $10,093 | $37,453 | |||||||
NYMEX strip price and gas price assumptions:
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||
| Oil per BBL | $55.38 | $62.62 | $65.40 | $67.32 | $68.98 | $70.80 | $71.55 | |||||||||||||||
| Plant Products per BBL | $19.38 | $21.92 | $22.98 | $23.62 | $24.14 | $24.78 | $25.04 | |||||||||||||||
| Gas peer MMBTU | $2.87 | $3.19 | $3.47 | $3.60 | $3.70 | $3.80 | $4.13 | |||||||||||||||
Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol “SSN”. Samson’s American Depository Shares (ADSs) are traded on the New York Stock Exchange MKT under the symbol “SSN”. Each ADS represents 200 fully paid Ordinary Shares of Samson. Samson has a total of 2,837 million ordinary shares issued and outstanding (including 230 million options exercisable at AUD 3.8 cents), which would be the equivalent of 14.185 million ADSs. Accordingly, based on the NYSE MKT closing price of US$1.49 per ADS on April 13th, 2015, the Company has a current market capitalization of approximately US$21.5 million (the options have been valued at an exchange rate of 0.7596). Correspondingly, based on the ASX closing price of A$0.009 for ordinary shares and a closing price of A$0.002 for the 2017 options, on April 13th, 2015, the Company has a current market capitalization of approximately A$26.0 million.
SAMSON OIL & GAS LIMITED
